Roche Holding AG is a research-based, product-focused organization dedicated to the discovery and early clinical development of pharmaceuticals and drugs, fine chemicals and vitamins, fragrances and flavors, diagnostic equipment and liquid crystals. The Company distributes its products throughout Europe, the United States, Asia and Latin America.
Industry:Large Cap Pharma Sector: Medical Fiscal Year End:December Last Reported Quarter:03/31/12 Next EPS Date:05/22/12
Capital Structure Solvency and Cash Flow
Roche’s FY09 operating cash flow increased 34% y/y in local currencies to CHF 15.7 billion. Free cash in FY09 increased CHF 3.9 billion y/y to CHF 8.9 billion francs. Net debt in FY09 was CHF 23.9 billion, down CHF 40.6 billion from a net cash position of CHF 16.7 billion in FY08, due to CHF 52.7 billion used in the Genentech transaction.
The Pharmaceuticals division generated an operating cash flow of CHF 14.9 billion in FY09, reflecting a y/y increase of 30% in local currencies, driven by strong operating performance.
Given the rapid progress in integrating Genentech, Roche expects to see significant productivity gains in 2010. The company plans to repay 25% of the debt raised to finance the Genentech transaction by the end of 2010. Further, the company aims to achieve pre-tax annual synergies of about CHF 1 billion by 2011. Based on its strong operating free cash flow, the company expects to reduce its debt progressively by 25% in 2010 and to return to a net cash position by 2015.
At the Annual General meeting, the company plans to propose annual diving of CHF 6.00 for FY09, reflecting a y/y increased of 20%, compared with FY08 dividend of CHF 5.00.
Last edited Mon Mar 15, 2010 12:21 AM by SudiptaMukherjee (Zacks Investment Research)
Governance Social Responsibility and Employee Relations
On December 16, 2009, Roche announced that it licensed its P2X31 receptor program aimed at developing chronic pain treatments to Afferent Pharmaceuticals. At the same time, Afferent successfully closed a $23 million financing, which will be used to accelerate the development of P2X3 receptor targeted pain therapies.
Last edited Mon Mar 15, 2010 12:22 AM by SudiptaMukherjee (Zacks Investment Research)
